just another area for potential concern ... and YES - Carly lives
U.S. CEOs worried about port lockout, no panic yet
WHITE SULPHUR SPRINGS, W.Va., Oct 3 (Reuters) - American chief executives said on Thursday they are worried about the possibility of a prolonged lockout at western U.S. ports, but at this stage are taking a wait-and-see attitude.
Union longshoremen and port employers were meeting with federal mediators on Thursday in hopes of ending a management lockout that has shuttered 29 ports stretching from San Diego to Seattle for five days.
While mediation talks have resumed, the escalating labor dispute has paralyzed cargo shipments, ranging from toys for Christmas to computer components, and have raised fears of major disruptions in the U.S. economy. The ports handle about $300 billion in goods a year.
"I can't quantify the impact at this point and it hasn't gone on quite long enough but it's worrisome," Carly Fiorina, chief executive of computer giant Hewlett-Packard Co. (HPQ) told Reuters. "That's the last thing we need."
Rival computer manufacturer Dell Computer Corp. (DELL) said that things appeared not to be raging out of control but it could pose problems if the lockout lasts too long.
"It seems to be under control for now. If it goes on for weeks, then obviously it would be a problem for us and a lot of people," CEO Michael Dell told Reuters. "The view seems to be that this isn't going to go on for weeks."
Executives interviewed at the annual Business Council meetings here at the posh Greenbrier golf and tennis resort said they had contingency plans but were not taking dramatic steps yet.
"Some of the ships have been diverted to different ports," said J.T. Battenberg, chief executive of automotive parts maker Delphi Corp. (DPH) . "We're multiple-sourced around the world, so we have the flexibility if we want to divert or change the source from China to Mexico or the U.S. or Europe."
But there was no panic in the air. Dell's CEO said that some of materials were going by air. "We move a lot of our stuff by air anyway, the high-value stuff," he said.
Xerox Corp. (XRX) CEO Anne Mulcahy said her company was closely examining the implications of the lockout but the ports shutdown would have less impact on her company than it would on retailers.
"We think we've got some time and it's not quite as significant an impact on a company like Xerox as it would be on a retail broad distribution company," she told Reuters. "We're planning what our contingency plans are, but it isn't terribly dramatic for Xerox." |
